HSBC Says Downside Risks for Gold are looking ‘increasingly limited’

Gold has been in the wars recently, undermined by persistently low global inflationary pressures and the prospect of tighter monetary policy from several leading central banks.

As seen in the chart below, from the year-to-date high of $1,295.97 an ounce struck on June 6, the spot price has fallen over 6%, briefly touching the lowest level since mid-March earlier this week before rebounding in recent trade.